Binance Coin (BNB) Close to Challenging All-Time High Levels

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In Brief
  • Binance Coin is trading between support and resistance at $26.80 and $31.80.

  • BNB could be trading inside an ascending triangle.

  • The price has completed a bullish impulse pattern.

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Binance Coin (BNB) is trading very close to a long-term resistance level, above which it has been attempting to break out for the past ten days.



While the direction of the next move is not entirely clear, a breakout seems more likely.

BNB Horizontal Levels

The BNB price began a rapid upward movement after a sharp drop on Sept 4. In a span of only ten days, the price proceeded to regain all of its previous losses to reach a new yearly high of $33.35 on Sept 14.

After a corrective movement, BNB reclaimed the $26.70 area, which is now expected to act as support. Conversely, the closest resistance area is found at $31.70.

Since the beginning of October, BNB has been trading between these two levels but is closer to the latter.



BNB Chart By TradingView

Possible Breakout

Cryptocurrency trader @raticoin1 outlined a BNB chart, stating that if the price breaks out from the current resistance area, it could increase all the way to $40 and reaching a new all-time high after.

Source: Twitter

The resistance level in the tweet is the $31.70 area outlined in the previous section. BNB has also been following an ascending support line since Sept 4, which creates an ascending triangle when combined.

 

Technical indicators in the daily time-frame are bullish/neutral. While the MACD, RSI, and Stochastic Oscillator are positive, they have stopped increasing and have a relatively neutral slope.

However, if a breakout transpires, the $40 area would be the target found by projecting the length of the triangle to the breakout point and resistance level.

BNB Chart By TradingView

The long-term chart supports this possibility since it shows that the price has already moved above the 0.618 Fib level of the entire decrease — a very common level for corrections to end.

In addition, if BNB were to move above the current resistance area (0.786 Fib level), the road to $40 would be free of any other major resistances.

BNB Chart By TradingView

Wave Count

While the long-term count is not entirely clear, it is likely that BNB has completed an A-B-C correction that began on Oct 14 and initiated a bullish impulse afterward.

Since the impulse looks completed, a short-term retracement would be expected before the price resumes its upward movement.

BNB Chart By TradingView

To conclude, BNB is expected to break out from the current resistance area after a possible short-term drop.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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